Uber Eats Commission: What Do Businesses Pay in Fees?

Uber Eats is a popular option for restaurants that want to offer delivery and reach more customers. Yet, many owners wonder about the costs of using the platform.

From commission fees to extra charges, knowing how Uber Eats pricing works is important. This helps businesses manage their costs while still benefiting from being part of a major delivery service.

Let’s examine how much Uber Eats charges and what affects these fees.

In this post:

• What Exactly Is Uber Eats?
• How Uber Eats Works
• Other Options to Uber Eats: Ways to Reduce Commission Costs
• 4 Ways to Lower Uber Eats Fees for Your Restaurant
• How Uber Eats Calculates Restaurant Fees
• What Are Uber Eats’ Commission Rates?
• Uber Eats vs. GrubHub vs. DoorDash: How Their Commissions Compare
• Why Are Uber Eats’ Fees So High?
• Are Restaurants Losing Money with Uber Eats?

What Exactly Is Uber Eats?

Uber Eats is a service that lets people order food from local restaurants through an app or website. It’s available in cities worldwide, and Uber drivers deliver the food.

Customers can see their delivery in real-time and pay with the method they’ve set up in their Uber account. But how much does Uber Eats charge restaurants for using their service?

How Uber Eats Works

Uber Eats connects people with local restaurants using the app or website. Customers can look at menus and place orders for delivery or pickup.

After an order is placed, the restaurant gets it and starts preparing the food. They can either use their own delivery drivers (which might lower delivery fees) or rely on Uber Eats drivers.

Uber delivery drivers are independent contractors who use their own vehicles to pick up the food and bring it to the customer. Payment is made through the app or to the driver, and customers can rate and review both the restaurant and delivery experience.

Other Options to Uber Eats: Ways to Reduce Commission Costs

Several other food delivery services might charge lower fees for businesses. Here are some alternatives to Uber Eats:

• DoorDash
• Zomato
• GrubHub
• Caviar

You might also think about starting your own delivery service or using another provider. This can help you lower delivery fees and give you more control over how deliveries are handled.

Another way to save on delivery fees is to negotiate with Uber Eats and other services. Ask if they can lower their commission rates for you.

4 Ways to Lower Uber Eats Fees for Your Restaurant

1. Take orders from your website: Create your own restaurant app and website with online ordering. This can help you save on commission fees.
2. Promote online ordering: Use restaurant marketing tools to let customers know they can order directly from your website instead of Uber Eats.
3. Cut sales commissions: Treat Uber Eats as a bonus way to get orders, not your main source. Use a commission-free ordering system to save money each month.
4. Negotiate fees: Contact an Uber Eats representative and see if you can get a lower commission rate. This can help you avoid raising menu prices to cover high fees.

How Uber Eats Calculates Restaurant Fees

Uber Eats charges restaurants based on a commission system. The restaurant pays a percentage of the total order value to Uber Eats for using their platform and handling deliveries.

The commission fees can vary depending on the restaurant's agreement with Uber Eats and their location. Generally, the standard rate is 30% of the total order value, excluding sales tax and driver fees.

Some restaurants might qualify for a lower commission rate, like those on the Lite plan. Besides the commission fee, Uber Eats may charge extra fees, such as:

• Delivery fee: A fee for each order delivered by an Uber Eats driver.
• Marketing fee: A fee for joining Uber Eats’ marketing campaigns or promotions.

Costs can differ based on location and specific agreements. It’s best to check with Uber Eats for details on delivery and service fees and how they might affect your restaurant's expenses.

What Are Uber Eats’ Commission Rates?

Commission rates for restaurants vary by region but usually range from 15% to 30%. This fee doesn’t include payment processing costs and service fees. So, Uber Eats takes a percentage of each order's total sale as commission.

Restaurants might also need to pay an extra delivery fee for Uber Eats drivers. Here’s a breakdown of what you can expect:

• Lite: This plan offers a lower commission rate of around 15% of the total order value, compared to the standard 30%. It’s a cost-effective option for many restaurants to join Uber Eats.
• Plus: This plan has a higher commission rate of 25% of the total order value. It offers more visibility on the Uber Eats app.
• Premium: This plan charges a 30% commission fee and boosts your business’s position in the app. It also matches up to $100 in extra ad spend.

Besides these plans, other costs may include a 6% fee for pickup orders and a 2.5% order processing fee plus $0.29 per order.

What Are Uber Eats’ Average Charges for Restaurants?

On average, Uber Eats takes between 15% and 30% in commission fees. However, there are additional fees to consider, like processing and marketing costs, which can take a big chunk out of your earnings from each order.

Uber Eats vs. GrubHub vs. DoorDash: How Their Commissions Compare

These food delivery services let customers order from restaurants online. Each company charges restaurants a commission fee for every order.

The commission fee varies between companies and can depend on the restaurant’s agreement with them. So, how do Uber Eats’ fees compare to others? Generally, GrubHub and Uber Eats charge around 20-30%, while DoorDash can charge up to 40%.

Remember, the commission fee is just one cost. These apps also add extra fees, like marketing and delivery costs, which can eat into restaurant profits.

Which Is More Affordable: Uber Eats or DoorDash?

For food delivery services, DoorDash usually has higher commission fees compared to Uber Eats. DoorDash fees can go up to 40%, while Uber Eats charges around 20-30%.

Why Are Uber Eats’ Fees So High?

Uber Eats charges high fees because it’s a popular platform with many users and intense competition among restaurants. Here’s why:

• Restaurant Competition: Restaurants pay higher commissions and extra fees to reach more customers and stand out from competitors.
• Delivery Fleet: Uber Eats has its own drivers, which adds to their costs and drives up fees.
• System Infrastructure: As part of Uber, Uber Eats uses expensive technology and infrastructure.
• Marketing Fees: Uber Eats promotes itself and the restaurants it works with, which increases overall costs.

What Goes Into Uber Eats’ Order Cost?

Restaurants face several fees with Uber Eats, including commission fees, delivery fees, service fees, and marketing or promotion fees (if applicable). To cover these costs, restaurants often raise their food prices.

How Do Restaurants Receive Payments from Uber Eats?

Restaurants are paid in different ways depending on their deal with Uber Eats. Typically, the process is as follows:

• Split payments with the driver: The delivery driver gets a percentage of the total order as their commission, and the rest goes to the restaurant.
• Your own delivery method: Some restaurants handle their own deliveries and collect payment directly from the customer, but they still pay a service fee to Uber Eats.

Are Restaurants Losing Money with Uber Eats?

Yes, Uber Eats fees can have a significant impact on restaurant profits. The platform charges a commission for each order, usually around 30%, but it can vary depending on the agreement.

Restaurants might also face extra charges for delivery, marketing, or other services. Despite the popularity of these apps, apps like Uber Eats can affect a restaurant’s bottom line.

As a result, many restaurant owners end up losing hundreds or even thousands of dollars each month due to these commissions and additional fees.1

The 4 Major Drawbacks of Using Uber Eats

• High fees: You pay up to 30% in commissions on each sale, which means your costs keep rising. The more you earn, the more Uber Eats takes.
• Lack of control: You don’t own your customer data and have limited control over marketing efforts.
• Risk of losing everything: If you stop using Uber Eats, you lose all your online orders and your app listing.
• Limited marketing options: Since you don’t own customer data, you can’t directly market to users who order through Uber Eats.

Is Uber Eats a Good Choice for Restaurants?

Uber Eats can offer restaurants extra revenue and boost their visibility to new customers. It also helps restaurants expand their delivery area and reach people who might not have tried their food otherwise.

But there are downsides too. The cost of using Uber Eats varies based on the plan and location. Restaurants don’t own their customer data or marketing, so they depend entirely on Uber Eats.

If a restaurant decides to stop using Uber Eats, they lose all online orders and marketing efforts. Marketing happens only within the app, so once you’re off the platform, you can’t reach those customers or get their orders. In this case, it might be worth learning how to get more Uber Eats orders to maximize benefits.

Whether Uber Eats is right for your restaurant depends on your situation, goals, and priorities. Be sure to read all the details and weigh the pros and cons before making a decision.

Final Thoughts on Using Uber Eats

• Uber Eats can charge up to 30% in commissions on each food order.
• Avoid relying on Uber Eats as your main online ordering source. High marketing fees and commissions can significantly cut into your earnings and negatively impact your restaurant. Instead, consider using an online ordering system with no commissions for more control and better returns.
• Create your own online presence with a branded website and mobile app to lower your commission costs.
• Using a platform like eLogii can improve your delivery process. With eLogii, you can manage deliveries in-house, saving on third-party fees and offering a better delivery experience. It helps streamline route planning, reduce delivery times, and optimize costs—allowing you to deliver orders efficiently without relying on Uber Eats' drivers.
• Encourage customers who use Uber Eats to order directly from your website to save on fees and improve your revenue.